David Cameron bids to boost trade with India

David Cameron and George Osborne head up a delegation of minsters and more than 50 Footsie chief executives – including Barclays Bank’s John Varley and WPP’s Sir Martin Sorrell – who touch down in India tomorrow to bang the drum for the UK.

Cameron has made securing foreign investment a key foreign policy in an effort to accelerate the chances of economic recovery at home.

So his unprecedented attempt to boost trade links with the former ‘jewel in the crown’ of the British Empire and now the world’s second-fastest growing economy, will be followed closely by City economists.

Drumming up business: David Cameron and George Osborne are heading a British delegation which landed in India this morning

Cameron has been critical of New Labour’s approach to the so-called Bric emerging economies - Brazil, Russia, India and China.

He now wants to create a ‘special relationship’ which will benefit Britain as it struggles out of a damaging recession. The market rejoiced last week when it heard the UK economy grew 1.1pc during the April to June quarter, the largest for four years.

Meanwhile, India’s economy is steaming ahead at 9pc.

Cameron will hold talks with his Indian counterpart, Dr Manmohan Singh, in the hope of making it easier for UK companies to work with Indian partners.

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It is hoped that a number of large scale deals could be announced and BAE Systems will help the cause.

The defence company is expected to confirm a £500m deal to build 57 Hawk trainer jets for the Indian Air Force and Navy in collaboration with their Indian partners, Hindustan Aeronautics Ltd, near Bangalore.

The Indian Air Force has ordered 40 jets and the Indian Navy 17. It follows a 66 jet order two years ago which have already been delivered.